REDUCE RISKS BY ADDING ALLIES FOR BETTER RISK MANAGEMENT
A key to finding ‘million dollar blind spots’ before they find you is gathering more allies and advocates. Effective value-based enterprise risk management (ERM) requires a high-quality risk register generated in a cost-effective manner. By investing small amounts of additional time and money, you can dramatically improve ERM efficiency while gaining new allies, and even friends.
That said, who are your natural allies? Where can you search for them? Why will they care?
Start by looking for other departments whose registers could be coordinated with yours for a reasonable amount of extended effort. Even major organisations often have similar but disparate information that is not linked to other logical functions – remember hearing the phrase ‘islands of data’?
The most logical place to look for allies is the finance department. Often, risk management is either part of the finance function or part of a kindred-spirit risk or insurance function. These groups speak similar languages and normally have a history of working relationships. In most organisations, three following specific areas often have their own complementary databases, systems or processes, as outlined below.
Jul-Sep 2017 Issue